Correlation Between Enovis Corp and LeMaitre Vascular
Can any of the company-specific risk be diversified away by investing in both Enovis Corp and LeMaitre Vascular at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Enovis Corp and LeMaitre Vascular into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enovis Corp and LeMaitre Vascular, you can compare the effects of market volatilities on Enovis Corp and LeMaitre Vascular and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Enovis Corp with a short position of LeMaitre Vascular. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enovis Corp and LeMaitre Vascular.
Diversification Opportunities for Enovis Corp and LeMaitre Vascular
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Enovis and LeMaitre is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Enovis Corp and LeMaitre Vascular in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LeMaitre Vascular and Enovis Corp is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Enovis Corp are associated (or correlated) with LeMaitre Vascular. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LeMaitre Vascular has no effect on the direction of Enovis Corp i.e., Enovis Corp and LeMaitre Vascular go up and down completely randomly.
Pair Corralation between Enovis Corp and LeMaitre Vascular
Given the investment horizon of 90 days Enovis Corp is expected to under-perform the LeMaitre Vascular. In addition to that, Enovis Corp is 1.18 times more volatile than LeMaitre Vascular. It trades about 0.0 of its total potential returns per unit of risk. LeMaitre Vascular is currently generating about 0.14 per unit of volatility. If you would invest 7,849 in LeMaitre Vascular on August 28, 2024 and sell it today you would earn a total of 2,860 from holding LeMaitre Vascular or generate 36.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enovis Corp vs. LeMaitre Vascular
Performance |
| Timeline |
| Enovis Corp |
| LeMaitre Vascular |
Enovis Corp and LeMaitre Vascular Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enovis Corp and LeMaitre Vascular
The main advantage of trading using opposite Enovis Corp and LeMaitre Vascular positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enovis Corp position performs unexpectedly, LeMaitre Vascular can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in LeMaitre Vascular will offset losses from the drop in LeMaitre Vascular's long position.The idea behind Enovis Corp and LeMaitre Vascular pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| LeMaitre Vascular vs. InfuSystems Holdings | LeMaitre Vascular vs. Pro Dex | LeMaitre Vascular vs. Utah Medical Products | LeMaitre Vascular vs. Milestone Scientific |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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